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Sir James Dyson has won a shock victory in the European courts over Brussels rules which the company says unfairly penalised its vacuum cleaners.

An appeal in the European Court of Justice said a previous ruling from a lower court against Dyson had “distorted the facts” and “erred in law”.

Sir James has been fighting an EU ruling which requires vacuums to be labelled showing their energy efficiency and cleaning performance as part of a green drive by Brussels bureaucrats.

The billionaire entrepreneur argued that the tests are only relevant to vacuums with their dust bags empty and do not cover them when they are full, as they would typically be in normal use. A full vacuum would typically use...